5.
22
exchange system, and could be justified, albeit in
somewhat indefinite terms, from a number of points of
view. The Working Group recognised, however, that the
acceptability of any unit rate between these limits
would depend on the system by which it was to be updated
and the nature of the package, including the exchange
offer, in which it was offered.
THE EXCHANGE OPTION, THE PROPO SED PACKAGE OFFER AND THEIR IMPLICATIONS
5.1
As has been stated above, the difficulties
presently being experienced derive chiefly from the
unattractiveness of the cash compensation alternative
and the Government's failure to provide new building land
for exchanges within a reasonable time of the creation
of exchange entitlements. With its present backlog, the
Government would prefer to do away with the exchange
option altogether but, as mentioned in paragraph 3.1.6
above, this would be unacceptable to those affected.
Working Group considered, however, that, in the context
of a higher cash offer, a modified exchange entitlement
would probably be generally acceptable. Various
approaches and rates were considered and discussed, and
the final formula for the recommended package, which
was agreed by the whole Working Group, is as follows :
The
/5.1.1